Question 7(a) With respect to division of labour state the following:
(i) An example each of vertical and horizontal division of labour.
(ii) Two advantages to the producer.(iii) Two disadvantages to the worker. [5]

(b) Discuss five causes of the low rate of capital formation in India. [5]

Question 8(a) Discuss the functions of the Central Bank as a banker to Banks’ and banker to the Government’. [5]